How the stock market works (?)

[dromia]

Stock Market Explanation

Once upon a time, in a village, a man appeared and

announced to the villagers that he would buy monkeys

for $10 each.

The villagers seeing that there were many monkeys

around, went out to the forest, and started catching

them. The man bought thousands at $10 and as supply

started to diminish, the villagers stopped their

effort. He further announced that he would now buy

at $20. This renewed the efforts of the villagers

and they started catching monkeys again.

Soon the supply diminished even further and people

started going back to their farms. The offer increased

to $25 each and the supply of monkeys became so little

that it was an effort to even see a monkey, let alone

catch it! The man now announced that he would buy

monkeys at $50 ! However, since he had to go to the

city on some business, his assistant would now buy on

behalf of him.

In the absence of the man, the assistant told the

villagers. "Look at all these monkeys in the big cage

that the man has collected. I will sell them to you at

$35 and when the man returns from the city, you can

sell them to him for $50 each." The villagers rounded

up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only

monkeys everywhere!

Now you have a better understanding of how the stock

market works.

[DuncaninFrance]

Ah! Monkey Business